April 21, 2024

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Rodriguez and Lore take a big step toward completing the Timberwolves and Lynx deal

Rodriguez and Lore take a big step toward completing the Timberwolves and Lynx deal

Marc Lehr and Alex Rodriguez have submitted signed financial documents to the NBA to complete the acquisition of majority control of the Minnesota Timberwolves and Lynx from Glenn Taylor, multiple sources familiar with the matter said. The athlete.

Dyal Capital Partners has come on board as an investor in the Lore-Rodriguez group, giving them the final financial backing needed to complete the deal, industry sources said.

The move is an important step for the group as they look to purchase the final 40 percent stake in the franchise, which will allow them to succeed Taylor as main owners. Its ownership structure must still be approved by the NBA's Board of Governors before they can assume full control of the franchises, although it was not immediately clear how long that process might take.

Lore and Rodriguez own 40 percent of the team, the result of two previous purchases of 20 percent of Taylor's shares dating back to 2021. When the two friends initially agreed to the succession plan, it was drawn up with the goal of a gradual transition to controlling partners. The structure of the deal was attractive to Taylor, who was not yet ready to relinquish full control of the teams at the time, and Luer and Rodriguez, who wanted the time to learn the ins and outs of professional basketball and have their own financial resources in order to see it through. The purchase is worth $1.5 billion.

In December, Lore and Rodriguez exercised their option to buy the final 40 percent of the deal. This opened a 90-day window for them to close the purchase, giving them until March 27 to submit the necessary documents and commitment letters to make it official.

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The move comes one day after it was announced that The Carlyle Group, a private equity firm, had withdrawn $300 million from the Laure Rodriguez Group. League sources said The athlete Because Carlyle was unable to agree to certain requirements that the NBA sets for investors, it was mutually agreed upon that Carlyle would withdraw.

“The NBA has not denied Carlisle’s proposed investment in the Minnesota Timberwolves and Lynx,” NBA spokesman Mike Bass said. The athlete.

When it became clear that Carlyle could not move forward with the group, Lore and Rodriguez quickly turned to new partners to raise the capital necessary to move the operation forward, aligning with Dyal Capital to complete their group.

Among the people known to be in their ownership group is Eric Schmidt, the former CEO of Google.

The final steps of the process took place during a remarkable season for the Timberwolves. They are 47-22 and in third place in the Western Conference, just one game behind Denver and Oklahoma City.

This revival has ushered in a new era of popularity for the Timberwolves in Minnesota. They have sold out tickets for every home game, an increase of about 10 percent from last season. Local television ratings skyrocketed and Anthony Edwards emerged as one of the brightest young stars in the league.

Loer and Rodriguez were integral to the success, leading the hiring of Tim Connelly, the Wolves' president of basketball operations, away from Denver in May 2022. Loer and Rodriguez had a much higher influence within the organization than typical minority owners, with Taylor approving their input to help with Facilitating the transfer process, if this occurs with the approval of the league.

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(Photo by Alex Rodriguez and Marc Lore: David Berding/Getty Images)